Baosteel Resources International Co., Ltd., a subsidiary of Chinese steelmaker The Baosteel Group, acquired 20,234,967 units of mining company Noront Resources Ltd. Thursday-each unit consists of one common share and one half of one common share purchase warrant (Baosteel could exercise each warrant at a later date to acquire one common share of Noront). Baosteel now owns 9.9 percent of Noront, and if Baosteel chooses to exercise the warrants, Baosteel ownership will rise to 14.15 percent.
Noront Resources plans to use the proceeds of Baosteel's investment to fund its fiscal 2012 budget of C$17.6 million (US$18 million) which will be used to complete and expand Noront's current mining operations. (sourced Steelorbis)
Tags: China , Canada , Baosteel , raw mat , Far East , East Asia and Pacific , North America , mining , investments , M&A